Core Viewpoint - Bill Miller, founder of Miller Value Partners, has a history of outperforming the S&P 500 and has recently initiated a significant position in Verizon Communications, reflecting a strategic shift in the portfolio towards value stocks in the telecommunications sector [1][2][4]. Company Overview - Miller Value Partners' investment portfolio consists of 34 stocks, with Verizon being the largest new holding added in the first quarter of 2025, amounting to 198,000 shares valued at $8.98 million [2][4][5]. - Verizon's market capitalization is approximately $183 billion, and the new stake represents 4.09% of Miller Value Partners' total portfolio [5]. Financial Performance - Verizon's forward price-to-earnings ratio is 9.2, significantly lower than AT&T's 13.4, indicating a more attractive valuation [6]. - The company reported a wireless service revenue of $20.8 billion in the first quarter, showing year-over-year growth in both revenue and earnings [7]. - Verizon's adjusted EBITDA reached its highest level ever, with the strongest growth rate in nearly four years [7]. Growth Prospects - Verizon anticipates closing its acquisition of Frontier Communications in early 2026, which could further enhance its growth trajectory [8]. - The company has demonstrated a strong free cash flow increase, rising to $3.6 billion in Q1 2025 from $2.7 billion in the previous year [9]. Dividend Policy - Verizon has increased its dividend payout for 18 consecutive years, indicating a commitment to returning value to shareholders [9]. - The company's financial health supports the continuation of this dividend growth, with a clear pathway for meaningful debt reduction ahead of the Frontier acquisition [12]. Debt Management - Verizon's net unsecured debt stood at $115.1 billion at the end of Q1 2025, which is $11 billion lower than the previous year [11][12]. - The company's net unsecured debt to consolidated adjusted EBITDA has improved year-over-year, suggesting better debt management [12].

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Company and Industry Analysis - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice, indicating a focus on providing insights rather than direct recommendations [3][4]. - There is a clear distinction made between the opinions expressed in the article and those of Seeking Alpha as a whole, suggesting that the views may not represent the platform's official stance [4].

Core Insights - The 2025 Indianapolis 500 race set a new record for data usage on the Verizon network, with a total of 172 terabytes (TB) consumed, marking it as one of the highest data usage events in Verizon's history [1][3][4] Data Usage Highlights - The event saw more unique users than the Super Bowl, indicating a massive demand on wireless networks [2] - Verizon's network handled more data than any previous NFL draft and nearly double the data of any Super Bowl in recorded history [2] - The data usage during the race was equivalent to over 57 million digital photos, showcasing the scale of connectivity [3] 5G Network Performance - The significant increase in data usage was driven by the commercial activation of 5G Standalone at the Indianapolis Motor Speedway, enhancing the fan experience through real-time sharing [4] - There was a 74.6% increase in 5G Ultrawideband (UW) volume, rising from 43 TB last year to 61 TB this year [7] - Overall traffic saw a 48.5% increase in total combined 4G and 5G UW data volume, demonstrating the network's capability to meet intense demand [7] Fan Engagement and Broader Impact - High fan engagement was evident, with 15 TB of the 61 TB used inside the track being uploaded data, reflecting real-time sharing among fans [7] - Outside the track, over 111 TB of data was used, indicating the event's broader impact on the network [7] - The combined data volume inside and outside the venue reached nearly 172 TB, representing a 35% increase from the previous year's race day [7]

Company Overview - Verizon Communications Inc. is actively participating in the Bernstein 41st Annual Strategic Decisions Conference, indicating its commitment to engaging with investors and analysts [1]. - Sowmyanarayan Sampath serves as the CEO of Verizon's Consumer Group, highlighting the leadership structure within the company [2]. Market Insights - The competitive intensity in the telecommunications market has been increasing, with indicators such as gross adds and equipment revenues showing positive trends [4]. - The second quarter of the year is expected to maintain a competitive environment similar to the first quarter, which experienced elevated competition [5]. - Following the holiday promotions in January, Verizon typically reduces promotional activities, but competitors have also adjusted their strategies accordingly [6].

Financial Data and Key Metrics Changes - The competitive intensity in the market has increased, with gross adds showing double-digit growth on the postpaid phone side [6][10] - The company has seen a slight increase in churn due to price hikes and competitive pressures, but expects to return to a business-as-usual (BAU) posture in the second half of the year [54][74] Business Line Data and Key Metrics Changes - The broadband and mobility businesses are identified as the two engines of growth, with a clear path to becoming the number one converged player in America [10][14] - The company aims to cover 40 million homes with fiber and continues to see strong momentum in its Fixed Wireless Access (FWA) product, targeting 8 to 9 million subscribers [13][24] Market Data and Key Metrics Changes - The switcher pool has increased, with both port-ins and port-outs rising, indicating a competitive environment [6][10] - The company has a strong position in the prepaid market, having gained market share over the last three quarters [37][38] Company Strategy and Development Direction - The company aims to be the number one converged player in America, focusing on both mobility and broadband [10][14] - The strategy includes leveraging AI for operational efficiencies and enhancing customer care, which is seen as a potential differentiator in the market [106][109] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape but believes the company's value proposition resonates well with customers [7][10] - The company expects to see continued growth in gross adds and a reduction in churn as it implements its strategies [54][74] Other Important Information - The company has committed to a million-plus new fiber offerings post-acquisition of Frontier, with a focus on reducing build costs through automation and AI [21][23] - Adjacent products and perks are becoming a significant part of the business, with a projected $2 billion run rate and mid-30% margins [78][81] Q&A Session Summary Question: What are the expectations for gross adds in the second half of the year? - Management expects gross add momentum to continue due to a strong value proposition and improved sales execution [56][61] Question: How does the company view the competitive landscape and its impact on ARPU? - The company does not aggressively pursue pre-to-post migration but focuses on serving customers well in the prepaid space, maintaining a premium mix [63][64] Question: What is the strategy for reducing churn? - A strong value proposition, cross-selling opportunities, and loyalty programs are key strategies for reducing churn [69][72] Question: How does the company leverage AI in its operations? - AI is used to enhance customer care, improve operational efficiencies, and provide personalized experiences [106][109]

Core Insights - Verizon Communications Inc. is participating in TD Cowen's 53rd Annual Technology, Media & Telecom Conference, highlighting its engagement with industry stakeholders [1]. - Frank Boulben serves as the Chief Revenue Officer of the Consumer Group at Verizon, overseeing product design, pricing, media, promotions, and customer relationship management [3]. Consumer Segment Overview - The consumer segment experienced phone losses in the first quarter, which were larger than expected by analysts, indicating a higher churn rate [4]. - The industry faced challenges in January, affecting all major players, including Verizon [4].

Financial Data and Key Metrics Changes - Verizon reported a 2.7% increase in wireless service revenue and a 4% increase in EBITDA for Q1 [6][29] - The company expects the price hikes implemented in 2024 and January 2025 to generate approximately $1.1 billion in revenue for 2025 [15][29] Business Line Data and Key Metrics Changes - Overall phone net additions, including consumer, business postpaid, and prepaid, increased by about 90,000 year-on-year [6][11] - In Q1, consumer postpaid phone net losses were impacted by competitive factors and price increases, but gross adds showed high single-digit growth in March and continued into Q2 [16][20] Market Data and Key Metrics Changes - The competitive landscape saw Verizon's competitors maintaining holiday promotions longer than expected, affecting customer acquisition [11][15] - Verizon's customer base remains premium, with no year-on-year change in involuntary churn and improved quality metrics for new customers [22] Company Strategy and Development Direction - Verizon's strategy includes a three-year price lock and free phone offers to enhance customer retention and acquisition [17][20] - The company aims to continue investing in its network to maintain its position as the provider of the best network experience [23][25] - Verizon is focused on cross-selling opportunities between its mobile and broadband services, particularly with the upcoming Frontier acquisition [39][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning churn to business-as-usual levels in the second half of the year as new initiatives take effect [20][31] - The company anticipates year-on-year growth in postpaid phone nets and is optimistic about the impact of its value guarantee and network improvements [31][33] Other Important Information - Verizon's fixed wireless access strategy is designed to utilize excess capacity in its mobile network, with no dedicated capital expenditure for fixed wireless access [58] - The company is seeing a shift in fixed wireless customers from urban to rural areas as it expands its C band network [63][68] Q&A Session Summary Question: What happened with phone losses in Q1? - Management noted that competitive factors and price increases contributed to higher churn, but overall phone nets improved year-on-year [11][16] Question: How is the health of the consumer base? - Management reported no deterioration in the health of the consumer base, with stable involuntary churn and improved quality metrics for new customers [22] Question: What is the strategy for the Frontier integration? - The focus will be on cross-selling opportunities and achieving operational synergies, with expectations of $500 million in operational expense synergies by year two [39][40] Question: How does fixed wireless fit into the overall strategy? - Fixed wireless is seen as an ancillary benefit of the mobile network, with no plans to transition customers to fiber unless they are in the Fios footprint [70] Question: What are the growth opportunities in prepaid? - The company has repositioned its Tracfone brands to be competitive in the high-end prepaid market, leading to growth in this segment [73][75]

Group 1 - Verizon's executive vice president and CEO for Verizon Consumer, Sowmyanarayan Sampath, will speak at the Bernstein Strategic Decisions Conference on May 29, 2025, at 8:00 a.m. ET, with a webcast available on the Investor Relations website [1] - Verizon generated revenues of $134.8 billion in 2024, highlighting its significant market presence and commitment to innovation [2] - The company serves millions of customers globally, including nearly all of the Fortune 500, focusing on mobility, reliable network connectivity, and security [2] Group 2 - Verizon's online media center provides access to news releases, stories, and media contacts, enhancing communication with stakeholders [3] - Media contacts for Verizon include Adi Wineland, who can be reached via email for inquiries [3]

Dividend Stocks Overview - Dividend yield is a key metric for investors, indicating how much a company pays in annual dividends relative to its stock price [1] - The sustainability of a company's dividend yield is often assessed through its dividend payout ratio, which shows the percentage of net income distributed as dividends [1][3] - A high dividend yield may result from a declining stock price, which could indicate underlying issues [2] Altria Group (MO) - Altria Group has a dividend yield of 6.83% and an annual dividend of $4.08, with a payout ratio of 68.34% [5][6] - The company has a strong track record of 56 consecutive years of dividend increases and an annualized 3-year dividend growth of 4.35% [5][8] - Despite the decline in traditional tobacco smoking, Altria is pivoting towards alternative nicotine products, which may support future revenue and earnings growth [7] - The stock has delivered a total return of over 609% in the last 15 years, and its current P/E ratio of 9x indicates it is undervalued compared to its historical performance [6][7] United Parcel Service (UPS) - UPS has a dividend yield of 6.88% and an annual dividend of $6.56, with a high payout ratio of 95.63% [9][10] - The company has a history of maintaining dividends even during economic downturns, with a cash flow payout ratio of 66% [10] - UPS is undergoing a turnaround plan that is expected to improve margins, and its P/E ratio is around 14x, which is a discount to historical averages [11] Verizon Communications (VZ) - Verizon has a dividend yield of 6.25% and an annual dividend of $2.71, with a payout ratio of 64.52% [12][14] - The company has a 20-year track record of dividend increases, but its recent total return over 10 years is only 45.22% [13][14] - Verizon is facing challenges with subscriber losses but has received FCC approval for a deal to acquire Frontier, which may enhance its competitive position [13][14]

Company Overview - Verizon Communications Inc. generated revenues of $134.8 billion in 2024, serving millions of customers globally and nearly all of the Fortune 500 [3]. Upcoming Events - Frank Boulben, senior vice president and chief revenue officer for the Consumer Group of Verizon, is scheduled to speak at the Cowen Technology, Media & Telecom Conference on May 28, 2025, at 10:15 a.m. ET, with his remarks available via webcast [1]. Financial Information - For details on Verizon's most recent financial results, the company's 1Q25 earnings results are available [2].